Loan origination charges
A few lenders will have you make a payment for a loan origination fee. It may be noted that a loan origination fee is the fee that a lender charges for processing fee of a new loan application and for the annual rate percentage calculation. This fee generally varies from 0.5% to 1% of the principal amount, so you can easily compare among many lenders for better interest rates.
Often, the borrowers prefer to add the origination fee to the principal loan amount.
Minimize the interest expense
Borrowers should always try to keep their interest expenses to a minimum when they borrow. This way they will be able to direct a greater part of their incomes to clearing their debts, future investment and in their household expenses.
So, after analyzing all these factors, we can easily conclude that for most of the borrowers, a personal loan is a better choice as compared to a cash advance.